20240515_Bond_Increase

ROY COOPER
n
Governor
ELIZABETH S.BISER
Secretary QVAM VIOL
WILLIAM E.TOBY VINSON,JR. NORTH CAROLINA
Interim Director Environmental Quality
May 15, 2024
Certified Mail
Return Receipt Requested
7022 0410 0003 1066 6082
Scott Reece
The Quartz Corp.USA
PO Box 309
Spruce Pine,NC 28777
RE: Altapass Mine
Mining Permit No. 61-16
Mitchell County
French Broad River Basin
Dear Mr. Reece:
Your application for a modification of the above referenced mining permit, has been approved but the modified
permit shall not be issued until the Department has received the required bond or security pursuant to N.C.G.S. §74-
51(h) in an amount sufficient to cover the present operation.
During the review of your company's reclamation bond file,it was determined that your company is not sufficiently
bonded. The required bonds are as follows:
Permit No. Mine Name Required Bond Amount
61-01 Chalk Mountain Mine $479,400.00
61-02 Wiseman-Sullins Mine $292,000.00
61-06 Pine Mountain Mine $477,700.00
61-16 Altapass Mine $41,600.00
61-17 Pete Lawson Mine L $471,200.00
61-18 Beaver Creek Mine $40,600.00
61-20 Duncan Mineam= $39,500.00
Total 84 III
Pursuant to the passage of House Bill 56,which became law on October 4, 2017, as SL 2017-209,the cap on
reclamation bonds pursuant to N.C.G.S. §74-54,has been raised from$500,000 to $1,000,000.You must
immediately increase your bond total to $1,000,000 to cover your reclamation bond responsibility. Our records
show that The Quartz Corp.USA currently holds a$500,000 surety with Federal Insurance Company.
For your convenience,I have enclosed the calculations for each site, a bond form, an assignment of a savings
account form, and an irrevocable standby letter of credit form. The name on the security form must be the same as
the name appearing on the enclosed draft permit, i.e., The Quartz Corp.USA. In addition to one of these
alternatives you may, upon request, substitute a cash deposit. Please review the reclamation bond worksheets and
contact this office should you have any objections or questions concerning the permit conditions. N.C.G.S. §74-51
North Carolina Department of Environmental Quality I Division of Energy,Mineral and Land Resources
512 North Salisbury Street 1 1612 Mail Service Center I Raleigh,North Carolina 27699-1612
NORTH CAROLINA _
Department^p Environmental o^a\ 919.707.9200

Page 2
Certified Mail
7022 0410 0003 1066 6082
provides that the operator has sixty(60)days following the mailing of a notice of the required bond in which to file
the required surety.
The permit cannot be issued until the required security has been received. No mining may be conducted until the
permit is issued. N.C.G.S. §74-65 states that the issuance of a mining permit does not supersede or otherwise affect
or prevent the enforcement of any zoning regulation or ordinance duly adopted by an incorporated city or county
or by any agency or department of the State of North Carolina.
Again, if you should have any questions on this matter please contact me, at(919) 707-9228.
Sincerely,
Co aay&L
Corey Clayton
Assistant State Mining Engineer
Enclosures: Bond Worksheets,Bond Sheets
cc: Ms. Shawna Riddle